Citadel Investment Group continued to bounce back from its awful 2008 last year, posting double-digit returns in all of its major hedge funds.

The Chicago-based industry giant saw its flagships soar as the average hedge fund shed about 4% in 2011. The Kensington and Wellington funds rose 20.4%, Reuters reports. And that was the bad news for the firm.

Citadel's other funds did even better: It's $2 billion global equities fund rose 21.4% on the year, while its $1.5 billion tactical fund returned an impressive 37.7%.

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.